How to achieve a more compassionate capitalism: look back to medieval Cambridge

by Catherine Casson (University of Manchester), Mark Casson (University of Reading), John Lee (University of York), Katie Phillips (University of Reading)

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How can modern economies reconcile the pursuit of international competitiveness with promotion of the common good? They could learn from the medieval period!

Contrary to popular belief, England in the late thirteenth century had a dynamic economy. Legal advances created a lively property market; cutting-edge technologies improved water management and bridge-building; commodity trade expanded; and towns grew dramatically, both in number and size.

But this was not an early form of individualistic capitalism. Family bonds were strong and community loyalty was intense. Economic ‘winners’ showed compassion for losers, rather than contempt.

Thirteenth-century expansion was not based on a consumer-driven boom. Its focus was on local infrastructure and local wellbeing. City churches were financed by local people to meet the needs of local people. Hospitals cared for the old, the poor and the needy, including special facilities for those affected by disease. Their legacy remains with us today: the most valuable real estate in a modern city is often occupied by medieval churches and hospitals.

Using recently discovered documents and novel statistical techniques, we have analysed the histories of over one thousand properties in medieval Cambridge over this period. Using evidence from the so-called ‘Second Domesday’ – the Hundred Rolls of 1279 – we show how wealth accumulated by successful businesses was recycled back into the community through support for local churches and hospitals and for itinerant preachers based in the town.

Town government was devolved by the king and queen to the mayor and bailiffs, and they encouraged the development of guilds, which promoted cooperation. New professions emerged in response to the growing demand for legal and administrative services.

The business centre of Cambridge shifted south as the town expanded. ‘New wealth’ replaced ‘old wealth’ as a local commercial class replaced Norman aristocrats. But local pride and religious devotion – expressed through high levels of charitable giving – helped spread the economic benefits throughout the town community.

This self-sustaining system was, however, broken in the 1340s by the Black Death, the outbreak of the Hundred Years War and the punitive levels of taxation imposed on towns thereafter. When prosperity returned in the Tudor period, a more ruthless form of capitalism took root, and it is this ruthless form of capitalism whose legacy remains with us today.

From NEP-HIS Blog: ‘The market turn: From social democracy to market liberalism’, by Avner Offer

The market turn: From social democracy to market liberalism By Avner Offer, All Souls College, University of Oxford (avner.offer@all-souls.ox.ac.uk) Abstract: Social democracy and market liberalism offered different solutions to the same problem: how to provide for life-cycle dependency. Social democracy makes lateral transfers from producers to dependents by means of progressive taxation. Market liberalism uses […]

via How do we eliminate wealth inequality and financial fragility? — The NEP-HIS Blog

From VOX – British wellbeing 1780-1850: Measuring the impact of industrialisation on wages, health, inequality, and working time

by Daniel Gallardo Albarrán, appeared on 22nd May 2016

http://voxeu.org/article/british-wellbeing-1780-1850-impact-industrialisation

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Repost – Gentlemen and capitalism: some questions

by Dave Postles, University of Hertfordshire

Consequent upon Wiener’s and Rubinstein’s research respectively into culture and industrial capital and ‘men of wealth’, Cain et al. embarked upon the elucidation of ‘gentlemanly capitalism’, which has become a paradigm of English entrepreneurship, status and the performance of the economy.(1) Perhaps, however, we can illustrate a dichotomy by reference to contemporary literature and ethnographic writing. Ostensibly, Henry Wilcox represents this ethos of gentlemanly capitalism, although his company is a commercial enterprise rather than industrial. We should recollect, however, that, although he purchased the Onibury estate (Clun, Shropshire), he really was not enamoured of the countryside, visited the estate rarely, and abandoned it when an unpleasant incident occurred there. Nor was he especially attracted to his wife’s Howards End. His countenance of both arose from expectations of status and family rather than a desire to enjoy the lifestyle of the country elite. His natural environment was the City.(2) In contrast, Jack London excoriated the 400,000 gentlemen in the 1881 census, ‘of no occupation’ and ‘unprofitable’.(3) Such a number could not have been composed of either retired industrialists or ‘men of wealth’.

Read the full article here: http://davelinux.info/wordpress/?p=32b1bb2b9a79a7a81b8033e6a9e8a9fd33

 

From WSJ – The Fall of the Unions Paved the Way for Donald Trump

Working-class whites once had a political home at the union hall; now they’ve found solidarity in a new populist movement

“There are two great material tasks in life,” declared John L. Lewis, the autocratic yet beloved head of the powerful United Mine Workers, to his followers during the 1940 presidential campaign. “The first is to achieve or acquire something of value or something that is desirable…The second task is to prevent some scoundrel from taking it away from you.”

The cheers and loyalty that such sentiments long evoked across the Rust Belt are worth recalling in the wake of Donald Trump’s shocking victory. Pundits across the ideological spectrum are busily repeating the obvious: White working-class men and women vented their frustrations at global elites, well-educated liberals, a condescending media and a capable but sometimes dissembling Democratic candidate in a pantsuit.

You can read the rest of the article on the Wall Street Journal online:

http://www.wsj.com/articles/the-fall-of-the-unions-paved-the-way-for-donald-trump-1478886094

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